Mid-Year Safe Harbor Change to Eligibility

Plan is SH Basic Match with 1 year wait and semi-annual entry.  Wants to amend to immediate eligibility but exclude seasonal employees who have not met the eligibility requirements.  Is that permitted to be done mid-year? 

I'll assume that any seasonal employees who already are eligible for the plan will continue to be eligible.

So this is a mid-year enhancement.  Furthermore, we're enhancing eligibility, which is not part of the required content of the safe harbor notice from Treas. Reg. Section 1.401(k)-3(d)(2)(ii).

Sure, you can make this amendment effective mid-year and don't need to circulate a new notice (although one would think the employer would want to promptly communication the plan enhancement).  Notice 2016-16 governs the situation.

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1 hour ago, MWeddell said:

I'll assume that any seasonal employees who already are eligible for the plan will continue to be eligible.

So this is a mid-year enhancement.  Furthermore, we're enhance eligibility, which is not part of the required content of the safe harbor notice from Treas. Reg. Section 1.401(k)-3(d)(2)(ii).

Sure, you can make this amendment effective mid-year and don't need to circulate a new notice (although one would think the employer would want to promptly communication the plan enhancement).  Notice 2016-16 governs the situation.

 

That was my assessment too but wanted to be sure I wasn't missing something.